By Charlie Conchie
Banking and wealth management group Investec announced it would buy back up to R$7bn (£350m) shares and hike its dividend payout today as it reported an 18.9 per cent boost in revenues in the first half of the year.
Bosses said they continue to “successfully navigate” uncertainty in the macroeconomic backdrop, as revenues at the investor jumped 18.9 per cent, as rising interest rates helped push up takings across its loan book.
“We have made good progress on our capital optimisation strategy as we seek to return excess capital from the South African balance sheet to shareholders,” Fani Titi, group chief executive.
“Today, we announce our intention to purchase and buy back up to R7 billion of our shares. I am also pleased that the Board has proposed an interim dividend of 13.5p per share, a 22.7 per cent increase on the prior period.”
The firm said it had suffered a slide in its assets under management however, as turmoil in the markets in the first half of the year rocked its investment portfolio.
Funds under management at the South African London-listed firm fell 7.6 per cent to 359bn, which the firm said reflected the “year to date decline in global markets”, despite investors adding £202m to its funds in the period.
“We have strong liquidity and capital levels and are well positioned to support all our stakeholders, including our clients, our people, and communities around us,” Titi added.
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